Fulfillment of Sustainable Development
The Company's Board of Directors resolved on 2020.09.29 to establish a SD Code of Practice and set up a SD promotion unit to be concurrently assumed by the Management Department, which will regularly review the appropriateness of policies, systems and management guidelines every year. We continue to dedicatedly fulfill our SD.
The following table shows the sustainable development implementation status, which has all conformed to the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies:
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In accordance with the vision and mission of the Company’s ESG policy, the “Sustainable Development Committee” was established on November 10, 2021 as the highest level of the Company’s internal decision-making center for sustainable development, with Director Wen-Shuai Liu as the convener to review the Company’s core operating capabilities with a number of members from different fields and formulated a medium and long-term sustainable development plan. The “Sustainable Development Committee”, we have established the “Environmental Protection Promotion Center”, the “Social Responsibility Promotion Center”, and the “Corporate Governance Promotion Center”. The leaders of each promotion center identify sustainability issues of concern to the Company’s operations and stakeholders through monthly group meetings, formulate corresponding strategies and work directions, prepare budgets for each organization and sustainable development, plan and implement annual programs, and track the effectiveness of implementation to ensure that the sustainability strategy is fully implemented in the Company’s daily operations. The"Sustainable Development Committee"regularly reports to the board of directors on the sustainable development implementation results and future work plans once a year. The reporting items include (1) identifying sustainable issues that require attention and formulating solutions, (2) goals and policies amendment for sustainability-related issues, and (3) supervising the implementation of sustainable management matters. The “Sustainable Development Committee” reports regularly to the Board of Directors on the results of the implementation of sustainable development and future work plans each year. The work plans include (1) identification of sustainability issues that require attention and formulation of response plans (2) revision of targets and policies for sustainability issues (3) supervision of the implementation of sustainable management issues. The Directors provide professional advice to the management team when receiving the reports. The Board of Directors reviews the feasibility of the strategies based on the contents of the reports and provides recommendations to the management team. |
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| This disclosure covers the performance of sustainable development in the main locations from January to December 2022. The risk assessment boundary is mainly based on the Company. Members of the Sustainability Committee analyze based on the materiality principle in the Sustainability Report, integrate the assessment information from various departments, assess the issues with materiality, formulate risk management policies with control and monitoring, and take specific action plans to reduce the impact of related risks. Based on the assessed issues, establish the relevant risk management policy or strategy as follows:
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III. Environmental Issues
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The Company core values and visions are the protection of the earth, sustainable development, green energy, carbon reduction, and clean energy, with nearly 20 years of experience as a professional energy engineering and technology integration team. We are dedicated to the development of renewable energy and clean energy services and technologies. In the trend of global sustainable development and Taiwan’s energy transformation policy, the Company has formulated a development strategy of [light, wind, water, air, and large platform] to provide a full range of energy services such as solar energy, offshore wind power, land-based wind power, hydroelectric power generation and other renewable energy plant construction and maintenance, clean energy liquefied natural gas (LNG) import, green power trading platform and ESCO energy saving, and energy storage device technology. |
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| The Company continues to promote energy management, e-conservation, waste reduction and resource recycling, and other environmental protection measures. Through environmental education and training, energy conservation, etc., all employees participate in the Company’s energy conservation program and develop environmental habits in their daily lives. Our carbon emissions increased by 12,910kg in 2022 compared to 2021 due to the increase in manpower. However, we have reduced emissions per capita. | |||||||||||||||||||||||||||||
| The Company has adopted the Sustainable Development Committee as the highest organization for climate change management, with independent director Wen-Shuai Liu as the convener. The Committee reviews the implementation of climate change strategies and targets, manages climate change risks and opportunities, reviews the implementation status, and discusses future plans at the annual meeting of the Sustainable Development Committee, and reports to the Board of Directors. The Company assessed the risks and opportunities of climate change for the Company in accordance with the TCFD proposal framework published by the International Financial Stability Board. We restart the process of a comprehensive assessment every three years and we review and update contents every year. The Company completed the assessment at the end of 2022 and identified the following six major risks among 22 climate risks. The transformation risk is mainly related to the increase in operating cost due to the change in policy, and the physical risk is mainly related to the increase in electricity consumption due to global warming caused by extreme weather, or the delay in construction progress or damage to equipment caused by natural disasters such as typhoons and floods. In terms of opportunities, the demand for the construction of power plants has increased in line with the national energy policy, and the construction of energy-saving equipment and services has brought the Company business opportunities due to the global goal of a low-carbon economy as a result of greenhouse gas warming caused by climate change. The Company is concurrently developing measures to address the above risks and opportunities. In terms of the risk of climate change, the Company immediately collects the government policies and related laws and regulations, and conducts early assessment of the impact and response plans, and carries out relevant insurance operations for related equipment to avoid natural disaster losses. In addition, under the national energy policy, the Company actively participates in the government’s private power plant bidding project and lays out the related business focusing on low carbon economy. Detailed description of the Company’s climate change risks and opportunities are disclosed in the Company’s Sustainability Report. |
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| 1. Greenhouse gas emissions for the last two years.
The average carbon emissions per capita in 2022 decreased by 23.62% compared to 2021, which exceeded the target of 5%. It is imperative for the Company to take ESG actions in response to global development trends. We established the Sustainable Development Committee (established on November 10, 2021) to formulate plans for attaining net zero emissions. We plan to start the greenhouse gas inventory for 2021 and 2022 starting from 2023 and appoint a third-party institution for verification. We plan to attain RE100 targets by 2030 and attain net zero emissions by 2040. The Company’s greenhouse gas emissions consist mainly of scope 2 and scope 3 emissions. We have planned “green electricity” and “energy conservation measures” for scope 2 emissions. In terms of the use of green electricity, as the Company’s parent company Cheng Uei Precision Industry Co., Ltd. has adopted Taipower’s trial electricity schedule program in 2022, the Company plans to purchase T-RECs starting from 2023 as green electricity. We will continue to purchase T-RECs from 2023 to 2025 and we plan to reach 100% green electricity consumption by 2025. In 2022, in terms of energy conservation measures, we replaced approximately 598 old light lamps with energy-efficient LED lamps in the 8F office of Dingpu R&D Center to reduce energy consumption. In addition to business and employee commuting, scope 3 also includes the inventory of all subsidiaries. The Company has incorporated the carbon inventory and related tests into its planning with reference to the sustainable development path released by the FSC, and the implementation status has been reported to the Board of Directors each quarter. Our carbon emissions increased in 2022 compared to 2021 due to the increase in manpower, but we have reduced emissions per capita. 2. Water cusage:
Management policy: The average water consumption per capita in 2022 decreased by 23.96% compared to 2021, which exceeded the target of 5%. In line with global sustainable development trends, access to water resources has also become critical for the Company. As the Company is an energy service company that uses only domestic water in the office, we use water-saving taps and make water-saving slogans to remind our employees to save water at all times. Our primary target is to reduce water consumption per capita by an average of 5% per year. Our water consumption increased in 2022 compared to 2021 due to the increase in manpower, but we have reduced water consumption per capita. 3. Waste:
Management policy and implementation status: The average waste production per capita in 2022 decreased by 7.6% compared to 2021, which exceeded the target of 3%. The Company’s waste mainly consists of general domestic waste generated in the office. In order to ensure sustainable development of the earth and reuse of resources, recyclable waste has been sorted and recycled, and our primary goal is to reduce the amount of waste generated by 3% each year. The Company continues to promote environmental training programs for employees to implement waste separation and resource recycling, and the Company uses reusable eating utensils in its employee restaurants to reduce waste generation. |
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IV.Social issues
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The Company establishes relevant rules and regulations in accordance with the Labor Standards Act and related labor laws and regulations to provide management and employee compliance in order to protect the legal rights and interests of employees. | |||||||||||||||||||||||||||||
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1.Employee welfare measures and implementation In addition to the health insurance and labor insurance policies under the Labor Standards Act of the R.O.C. and government regulations in Taiwan and foreign countries, the Company and its subsidiaries also provide employee group insurance and contribute to individual pension accounts for employees to protect their benefits. The measures and their implementation are as follows: A. Employees are entitled to special leave in accordance with the law, contributes to pension funds, and establishes an employee welfare committee to coordinate welfare activities and protect labor rights and interests. B. In addition to participating in labor insurance and universal health insurance in accordance with the law, all employees are provided with employer’s compensation liability insurance and employee group accident insurance to enhance the protection of employees’ livelihood. C. Monthly birthday parties and occasional employee travels are held to enhance the quality of leisure life and promote the exchange of colleague friendship. D. Provide gifts and travel allowances for Dragon Boat Festival, Mid-Autumn Festival and birthdays. E. Provide a hygienic and good environment and facilities in the staff cafeteria to improve the quality of staff meals. 2.Retirement system and its implementation The Company and its subsidiaries in R.O.C. contribute 6% of monthly salary to the employees’ personal accounts at the Bureau of Labor Insurance to protect the rights and interests of employees. Employees may also choose to contribute 0 to 6% of their monthly salaries to their individual pension accounts. The employees’ pension payments are made in the form of monthly pensions or lump-sum pensions, depending on the amount of the employees’ individual pension accounts and accumulated earnings. The Company’s subsidiaries in Mainland China contribute a certain percentage of local employees’ salaries to their pension accounts each month in accordance with the pension system established by the local government. Each employee’s pension is managed and coordinated by the government and the Group has no further obligation other than to make monthly contributions. 3.The Company’s overall objectives are to “increase profitability and revenue” and “reduce operating expenses”, and to ensure that the operating performance of each department is achieved. To share the results of business operations with employees, the Company conducts annual performance appraisals for the first and second half of the year. KPIs are used as the scoring standards for the distribution of bonuses to incentivize employees. The Company’s Articles of Incorporation also stipulate that: Article 23: In the event that the Company makes a profit in the year (profit means profit before tax before the distribution of employees’ remuneration and directors’ remuneration), the Company shall contribute not less than 6% as employees’ remuneration and not more than 3% as directors’ remuneration. However, if the Company still has accumulated losses, the make-up amount should be reserved in advance. The aforementioned employee compensation may be paid in stock or cash to employees who meet certain criteria of controlled or subordinate companies, and the Board of Directors is authorized to decide on the criteria and distribution. 4.The Company provides equal pay for equal work and equal promotion opportunities for both men and women. In 2022, the percentage of female employees was 36% and the percentage of female leaders was 11%. Due to the special nature of our industry and the fact that most of the experienced employees are men, the percentage of female leaders is not high. In the future, the promotion of executives will be carried out with the aim of attaining gender equality. |
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The Company’s work mainly involves EPC contracting and O&M services, and employees are only required to implement construction supervision or O&M operations onsite with medium low risks. The Company complies with the Occupational Safety and Health Act and related regulations and we established a Safety and Health Policy, which we rigorously implement to create a healthy and happy workplace. Our core values include regulatory compliance, enhanced safety awareness, injury and illness prevention, and continuous performance improvement and we aim to create a workplace with zero occupational hazards. To prevent potential hazards in the workplace and to provide a healthy and comfortable working environment for our employees, we issue hazard notifications to onsite personnel before each entry to ensure the safety and health of employees. We also provide new employees with labor safety training and education programs based on the nature of their work. We hold annual employee health examinations, and labor safety seminars and fire drills in training programs. In 2022 and 2021, the Company had no occupational accidents involving employees. | |||||||||||||||||||||||||||||
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In order to enhance employees’ professional skills, work efficiency and product quality, the Company conducts education and training in accordance with the annual education and training schedule. Internal training and external training are conducted simultaneously to strengthen the professional ability of employees in each functional area. Our training is listed as follows: A. Pre-employment training for new employees: Provide courses on the Company’s corporate culture, business items, work rules, employee benefits, rewards and sanctions, etc., so that new employees can have a basic understanding of the Company. B. On-the-job employee training: We arrange internal and external training courses according to the work requirements. C. Professional function training: Sending employees to relevant organizations for training according to the needs, so that they can obtain professional certification. |
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The marketing and labeling of our products and services are conducted in accordance with relevant laws and regulations and international standards. The Company has a dedicated personnel and email address to handle complaints about the Company and to promptly address consumer complaints. | |||||||||||||||||||||||||||||
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The Company attaches great importance to environmental and social protection and therefore considers whether suppliers have complied with relevant regulations on environmental protection, occupational safety and health, or labor and human rights before dealing with them. | |||||||||||||||||||||||||||||
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The Company’s 2021 Sustainability Report issued in 2022 was prepared in accordance with the Core Option Disclosure Principles in the GRI Reporting Standards of the Global Reporting Initiative (GRI). We also obtained Type 1 moderate-level assurance from AFNOR Asia Ltd. in accordance with AA 1000AS V3 and obtained an Independent Assurance Statement. |
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The preceding items show no major deviation from the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies.